Real Exchange Rate Behavior and Economic Growth: Evidence From Egypt, Jordan, Morocco, and Tunisia
International Monetary Fund, Mar 1, 1999 - Business & Economics - 24 pages
This paper examines the effect of the real exchange rate misalignment (RERMIS) on the collective economic growth of Egypt, Jordan, Morocco, and Tunisia. The paper constructs three measures of exchange rate misalignment based on purchasing power parity; a black market exchange rate; and a structured model. The empirical investigation confirmed the adverse effect of RERMIS on growth, using all measures of RERMIS, as predicted by endogenous growth models. The results also highlighted the role of other factors; specifically, capital growth and population have the theoretical signs predicted by the Solow growth model and are statistically significant.
What people are saying - Write a review
We haven't found any reviews in the usual places.
II Real Exchange Rate Misalignment and Economic Performance
III Exchange Rate Policies in Egypt Jordan Morocco and Tunisia A Brief Historical Review
IV Measuring Real Exchange Rate Misalignment
V The Impact of Misalignment on the Economic Growth of the Arab Countries
Other editions - View all
ACLOSE actual RER adverse impact ANDEV APCGR APOPG ARER ASIY ATOT AXCR balance of payments basket black market CAPFY Capita Growth Rate capital inﬂows captures the effect commercial banks pool country’s current account deﬁned devaluation dinar economic ﬁindamentals economic growth economic performance Edwards Egypt equilibrium RER established excess domestic credit exchange rate misalignment exchange rate policies EXCR exports ﬁnancial ﬁrst foreign currency foreign exchange market four Arab countries four countries Ghura and Grennes impact of RERMIS import income effect increase investigate the impact Jordan macroeconomic market exchange rate measure of misalignment measure of RERMIS model based measure Moroccan dirham Morocco NDEV non-tradables overvalued exchange rate paper parallel market PCGR percent policy induced POPG PPP measure real exchange rate reﬂecting reform remittances RER appreciation RER misalignment result sector sustainable equilibrium terms of trade three highest values three measures tradable transactions Tunisia uniﬁed Unit Root